SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

SEGMENT REPORTING

16. SEGMENT REPORTING

As of December 31, 2012, CCA owned and managed 47 correctional and detention facilities, and managed 20 correctional and detention facilities it did not own. Management views CCA’s operating results in two reportable segments: owned and managed correctional and detention facilities and managed-only correctional and detention facilities. The accounting policies of the reportable segments are the same as those described in Note 2. Owned and managed facilities include the operating results of those facilities placed into service that were owned and managed by CCA. Managed-only facilities include the operating results of those facilities owned by a third party and managed by CCA. CCA measures the operating performance of each facility within the above two reportable segments, without differentiation, based on facility contribution. CCA defines facility contribution as a facility’s operating income or loss from operations before interest, taxes, goodwill impairment, depreciation, and amortization. Since each of CCA’s facilities within the two reportable segments exhibit similar economic characteristics, provide similar services to governmental agencies, and operate under a similar set of operating procedures and regulatory guidelines, the facilities within the identified segments have been aggregated and reported as one reportable segment.

The revenue and facility contribution for the reportable segments and a reconciliation to CCA’s operating income is as follows for the three years ended December 31, 2012, 2011, and 2010 (in thousands):

	For the Years Ended December 31,
	2012			2011			2010
Revenue:
Owned and managed	$	1,395,193		$	1,356,678		$	1,331,707
Managed-only		359,417			361,246			324,858
Total management revenue		1,754,610			1,717,924			1,656,565
Operating expenses:
Owned and managed		916,730			864,252			853,248
Managed-only		317,761			310,701			282,165
Total operating expenses		1,234,491			1,174,953			1,135,413
Facility contribution:
Owned and managed		478,463			492,426			478,459
Managed-only		41,656			50,545			42,693
Total facility contribution		520,119			542,971			521,152
Other revenue (expense):
Rental and other revenue		5,275			6,419			6,752
Other operating expense		(17,693	)		(15,920	)		(15,750	)
General and administrative expense		(88,935	)		(91,227	)		(84,148	)
Depreciation and amortization		(113,933	)		(108,216	)		(103,710	)
Operating income	$	304,833		$	334,027		$	324,296

The following table summarizes capital expenditures for the reportable segments for the years ended December 31, 2012, 2011, and 2010 (in thousands):

	For the Years Ended December 31,
	2012		2011		2010
Capital expenditures:
Owned and managed	$	54,681	$	151,724	$	120,144
Managed-only		4,580		8,452		9,745
Corporate and other		17,685		10,905		7,822
Discontinued operations		—		301		491
Total capital expenditures	$	76,946	$	171,382	$	138,202

The assets for the reportable segments are as follows (in thousands):

	December 31,
	2012		2011
Assets:
Owned and managed	$	2,643,055	$	2,711,926
Managed-only		130,927		123,806
Corporate and other		200,760		180,220
Discontinued operations		—		3,679
Total assets	$	2,974,742	$	3,019,631